Browse Forums Building A New House 1 Jul 11, 2017 10:01 am Hi all, Just wondering if anyone has come across or been in a situation where you have put a holding deposit down for a house & land package (with split contracts - one for the land and one for the build) at a set price, and then the developer decides to increase the price of the land after you have paid the holding deposit? We have a situation where we have signed the building contract with the builder and paid our deposit (because they asked us to do this BEFORE we sign the land contract) and now that we have gone to sign our land contract and pay our deposit, the developer has put the property "on hold" whilst he considers whether or not to put the price up. We had several issues with our build contract - wrong house, wrong plans etc. and so it's taken several months for us to finalise and sign the build contract with the builder. We have signed the land contract and sent it to the developer's solicitors but they won't exchange until the developer decides whether to increase the price or not. Alternatively, the developer might just say "sorry, we are no longer selling it to you", which is what the developer's solicitors are indicating (even though we put down a holding deposit and have paid our build deposit!). If you have experienced something similar or know of someone who has, please get in touch. I don't know what else to do! We are first home buyers and this experience has been truely horrific and stressful Re: Developer wants to increase price of land (in house and 2Jul 11, 2017 11:22 am I haven't experienced what you are describing above. However, if it was me in your situation, I would take your deposit back in full and run. Warning bells are sounding with what you have described above - wrong house, plans, delays to sign build contract etc. Re: Developer wants to increase price of land (in house and 3Sep 05, 2017 9:19 pm That's why I prefer to purchase land first, then find a builder in time as they always reduce prices or have different specials throughout the year. Always shop around don't settle for just one or two builders to choose from, there are many out there with great deals. You still get all the benefits of first home buyers grant etc, your conveyancer will do the running around for you. If you don't have one I can give you my conveyancer who is one of the best in the business. Re: Developer wants to increase price of land (in house and 4Sep 05, 2017 9:22 pm I'm aware of a similar situation. The builder told the developer if they went ahead with the price rise, they (the builder) would withdraw from their developments nationwide. They honoured the initial price. Just to makea point about this, an approach that some people have found sucessful in negotiating these rises down, Is to provide some workings to the builder, specifying… 4 64862 2 22980 Fair Trading can issue orders to rectify and complete but once the matter goes to NCAT these orders are automatically vacated. You will have to terminate contract and sue… 21 25316 |